Talk the Talk – Know the Mortgage Lingo at Closing
Know the Mortgage Lingo at Closing
Most borrowers are completely at bay about the closing process- Sure they sign all the documents but when it comes to understanding what stage the process is in, they simply nod and smile through it all. You trust your real estate & mortgage team to do everything right, but its also important to understand the terminology that is being used. Here is some of the common lingo that is used at closing.
Docs Sent- Buyers are always very stressed out during the approval process and are eager to know whether they meet all the qualification requirements that have been laid-out by the lender. If you hear the term docs sent- it means you have made it and that the closing department has sent all the approved paperwork on to the closing agent- the title company or an attorney.
Docs Signed- This means the documents have been signed. This includes all the paperwork between the lender and borrower and will have details like the contracts and terms of the loan
Funded – It means that the funds have now been transferred from the lender to the concerned lending agent (with all the disclosures that are required). In the case of a home purchase, if the closing has taken place in the morning, the funds will be sent that same day. If the closing takes place in the afternoon, the fund transfer will take place the following day.
Recorded – This is related to the recording the deed transfers title or the legal ownership of that property to the buyer. The transaction will be recorded by the attorney or the title company, in the county register of the area where the property is located. This generally takes place soon after closing.
It helps to understand the closing lingo as it gives you more clarity about what exactly is taking place and you will be feel a little less lost with the entire closing process. The more clarity you have, the more confident you will be while speaking with the different parties involved in the process. You can also contact ResMac Home Loans for more information about application approval and to understand what the modalities are.